The Role of Price Perceptions in an Integrated Model of Behavioral Intentions

Abstract

Compared to the emphasis that service quality research has received in service marketing, much less work has been done on the role of price perceptions and their effect on customer retention. This article seeks to fill this gap in the literature. The authors build propositions of price’s role vis-à-vis customer value, satisfaction, and behavioral intentions and then test these propositions using empirical data from the banking industry in the United States and New Zealand. Their findings indicate that (a) price perceptions have a stronger influence on customer value perceptions than quality, and (b) price perceptions, when measured on a comparative basis, have a significant direct effect on customer satisfaction and behavioral intentions— over and above their mediated effect through the construct of customer value. These results indicate that price perceptions significantly affect customer retention and suggest that managers may benefit from actively managing consumers’ price perceptions, in addition to consumers’ quality perceptions.

The Influence of Relational Bonds and Innovative Marketing on Consumer Perception – A Study of Theme Parks

“…Greater perceived value leads to increased levels of satisfaction (Anderson, 1995). Some studies have also identified perceived value as an antecedent to customer satisfaction (Bolton & Drew, 1991;Fornell et al, 1996;Sajeev & Colgate, 2001). Customers are more satisfied when their interaction with a business provides value, which leads to a higher customer retention rate (Barnes, 2001).…”

Customer perceived value, satisfaction, and loyalty: the role of willingness to share information

“…The perceived value measure is often operationalized as customers' responses to a "worth what paid for" question (Gale 1994;Keiningham et al 2007;Varki and Colgate 2001). In the current study, perceived value was measured with five items concerning price/value for money adapted from Sweeney and Soutar (2001).…”

O Efeito Do Formato De Apresentação De Desconto Em Ambiente Crowding: Um Estudo Experimental

“…A utilização dessas estratégias deve-se ao fato de o preço ser uma variável relevante na decisão de compra (HEIL;HELSEN, 2001;VARKI;COLGATE, 2001; O efeito do formato de... TONI;MAZZON, 2011;SOOD;KELLER, 2012). Assim, a determinação do preço final de venda do produto e seu formato de apresentação são fundamentais para estimular a Intenção de Compra e a Percepção de Qualidade (CHEN; MONROE; LOU, 1998;GREWAL et al, 1998).…”